2022, Vol. 4, Issue 2, Part A

Target setting is a human resource tool for measuring employee’s efficiency to organizational performance. It is suitable for management and employees to have a clear set targets so that they can know and understand their performance from the management and employee point of view. This research assessed the effect of target setting on employee performance of Savings and credit cooperative organizations in the County of Kisii. The research study was majorly build based on two theories which include; human capital theory and Goal setting theory. In this investigation we employed descriptive research design approach. The participants in the study were chosen using stratified sampling, proportionate sampling and simple random sampling. Primary data from respondent was obtained using self-administered questionnaires. The effect of target setting on performance of employees was analyzed via linear regression models. In summary, the obtained results demonstrates existence of a positive relationship on employee performance which exists on the target setting while feedback had a non-positive relationship on performance of employee evidenced by r=-.160 with p .021<5%,. The study recommends the need for policy formulations so as to establish the effect of target setting as a component of performance appraisal. The results showed that good employee relationship with management leads to good performance, Target setting participatory should be good, Necessary training is given to employees who have not met their targets and to appraisers to appraise fairly, Target commitment improves employee performance, Targets help in achieving organizational goals and lack of top management support is a reason for target setting failure.